Most people have a rare idea of what an Income Tax Return is. This article will be used as a guide to enhance the knowledge of readers so they can understand Income tax, TDS (tax deduction at source), and Income Tax Return.
The process of Income Tax return filing is very simple, but very essential if you are earning any form of income that needs to be taxed. Income tax through TDS (tax deduction at source) can be done, but it is not mandatory if you are employed by someone else.
The Income Tax Act makes it compulsory for every person earning an income in India to file Income Tax Return.
Income tax has been levied from the very first day of April 1961 so that people can pay their Income Taxes based on their Income earned during a particular financial year. Income tax is a direct obligation that you have towards the government of your country. Income tax is approved by the Income Tax department of India and 25% Income tax has been levied on Income earned from 1st April 2014 to 31st March 2015.
The Income Tax department in India has a 25% Income Tax rate for people earning an income between Rs 2.5 lakhs to Rs 5 lakhs per annum. The income tax return has to be filed within the time period of 6 months, which means Income tax Return filing should be done by 31st July every year.
How to file Income Tax Return?
Income Tax Return forms must be filled in in order to avoid cash with Income Tax Department. You can file Income Tax Return online through the web portal incometaxindiaefiling.gov.in or the e-filing website of the Income Tax department.
Follow these steps for filing Income Tax Return
STEP 1: Log on to the Income Tax Department website, incometaxindiaefiling.gov.in. Select "New Income Tax Return (ITR1)" Income Tax form.
STEP 2: The income tax return form will be displayed with the option to "Create Profile". Click on "Create Profile". You can create a profile using your PAN, Name or Date of Birth, or Department of Income Tax e-Filing User ID. The Income Tax Department has created user ids that can be used for Income Tax Return filing purposes.
STEP 3: Log in to the Income Tax Department website incometaxindiaefiling.gov.in using your PAN, Name or Date of Birth or Income Tax e-Filing User ID.
STEP 4: The income tax return form will be displayed on the main screen with the option to "Link Aadhaar". The income tax return form will ask for your full name as given in the Aadhaar card, 12 digit Aadhaar number, and gender.
STEP 5: After connecting Income Tax e-filing with Aadhaar two additional Income Tax Return forms Income Tax department(ITR2 & ITR2A) will be displayed on the main screen. Income Tax Return filing can be completed by the Income Tax department ITR1 Income Tax Return form only.
STEP 6: After choosing the Income Tax e-filing Income tax return form, enter your Income details in boxes provided against each Income head with the corresponding Income tax slab rate. You can save the income tax return form after entering Income details and continue to enter the next Income details.
Income Tax Return filing for the previous year’s income will be displayed after saving the Income-tax return form.
STEP 7: Income Tax department calculates your Income-tax liability and Income Tax Refund amount. You can check your Income tax refund status online using the Income Tax e-file Refund Status Checker.
If there is an excess payment of Income-tax you can Link Aadhaar in the Income Tax Return form. Income tax refund will be transferred to the bank account linked with an Aadhaar card. You can also pay Income tax under protest by choosing Income Tax e-file Income Tax Challan mode.
STEP 8: After income tax return filing you must take a printout of the Income-tax return for record purposes. The income Tax department has registered your Income-tax return form as your Income Tax Return acknowledgment.
To be a responsible citizen and assure that government has enough revenues to cater for the needs of the country and able to resolve social challenges, everyone who is liable to pay taxes must fill their Income Tax Returns on time.
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